Versatile Reports First Quarter Results

Revenue for the three months ended September 30, 2012 was $7,915,848, generating a gross profit of $1,832,779 or 23.2% of sales compared to $9,039,212, generating a gross profit of $1,790,378 or 19.8% of sales for the same quarter last year. The Loss from Operations for the quarter amounted to $329,594 compared to $488,503 for the same quarter last year, an improvement of $158,909. The Net Loss for the quarter amounted to $404,094 ($0.00 per share) compared to the Net Loss of $413,827 ($0.00 per share) for the same period last year.

Highlights for the quarter included:

Revenue for the three months ended September 30, 2012 was $7,915,848 compared to $9,039,212 for the same quarter last year, a decrease of $1,123,364;

The gross profit for the three months ended September 30, 2012 was $1,832,779 or 23.2% of sales compared to $1,790,378 or 19.8% of sales for the same quarter last year;

The Earnings before interest, taxes, depreciation and amortization ("EBITDA") loss for the three months ended September 30, 2012 was $289,346 compared to an EBITDA loss of $440,084 for the same quarter last year, an improvement of $150,738;

The research and development expense for the quarter amounted to $236,246 compared to $244,110 for the same quarter last year;

Deferred revenue at September 30, 2012 was $6,453,971 (of which $5,269,399 is expected to be recognized in the next four quarters) compared to $6,047,097 at September 30, 2011, an increase of $406,874; and

The expenses for the quarter were lower than any previous quarter in the last two years.

The research and development expense for the quarter amounted to $236,246 compared to $244,110 for the same quarter last year. During the current quarter, the Company incurred $87,728 for research and development activities related to an iPad application for Mobiquity Sell, Mobiquity Route™ and $106,956 primarily related to Smart Sign™.

About Versatile

Versatile provides business solutions that enable companies to improve sales, marketing and distribution of their products. Versatile also provides information technology services for the implementation, maintenance and security of mission-critical computer environments. Versatile has the ability to architect solutions involving both proprietary and third party components. For more information: www.versatile.com.

Forward-Looking Statements

This document may contain forward-looking statements relating to Versatile's operations or to the environment in which it operates, which are based on Versatile's operations, estimates, forecasts and projections. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict or are beyond Versatile's control. A number of important factors including those set forth in other public filings could cause actual outcomes and results to differ materially from those expressed in these forward-looking statements. Consequently, readers should not place any undue reliance on such forward-looking statements. In addition, these forward-looking statements relate to the date on which they are made. Versatile disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.